By 2028, New Brunswick will experience an upward trend that returns its GDP growth rate to 2008 levels.
OVERVIEW
Importance
For New Brunswick, regularly having GDP growth rates above 2% would mean the province is on par with the Canadian GDP growth average for all provinces.
Having higher GDP growth rates results in higher tax revenue and more funding for public services without needing to raise tax rates. A higher GDP also makes prospective businesses more interested in the growing economy of New Brunswick.
Problem
New Brunswick’s real GDP growth rate has not been above 2% since2006, largely due to the 2008 recession.
Cause
The recession in 2008 severely impacted GDP growth for New Brunswick the following year. Then, during the rebuilding process in2012, the federal government had a tight fiscal year, and only provinces with strong ties to commodity markets were able to sustain growth. Following 2012, however, New Brunswick has seen continuous growth.
